South Koreas KOSPI has plunged 9% in two sessions after a strong 2026 rally, as AI-driven semiconductor stocks face profit booking. Rising U.S. inflation, geopolitical tensions in West Asia and leveraged ETF volatility have intensified the sell-off, raising concerns that the AI-led rally may have outpaced fundamentals.

South Korean stocks nosedived more than 8 percent Monday, extending their losing streak to a third consecutive session, as investors dumped market heavyweights

South Korean technology stocks rebounded sharply on Tuesday as investors returned to AI-linked shares after a steep three-day selloff that had pushed the KOSPI down more than 15%.…